Waterworks Board Delays Purchase Agreement

(posted Feb 26)

The Indianapolis Board of Waterworks delayed approving a $325,000 purchase agreement at its Feb 19 meeting because staff did not seek two appraisals to buy property needed for a new dam. The unoccupied house and bate shop, listed at $475,000 for 1.7 acres, is located at 4215 Fall Creek Parkway.

"It is directly across from the Fall Creek Treatment Plant," financial manager Robert Erney said.

The new dam is expected to cost over $2 million. The design has not been completed.

Lauren Toppen, legal counsel, said that certain appraisal exemptions are given to municipal-owned utilities for doing testings on the land that are currently being conducted.

Erney said that urgency is needed because there are other buyers looking at the property since it is next to the creek. "The interest there was, you know, is kind a of act or lose it situation, almost." Erney could not confirm how many buyers are showing an interest in the property.

Board member Frank Short was doubtful of the urgency since the bate shop has been vacant for 15 years.

Short wanted the appraisals done to see if $325,000 was appropriate. The current offer was based on area comparable sales. The board recommended obtaining two appraisals that are within 90% of the negotiated value. The Uniform Standards of Professional Appraisal Practice ethics code prevents an appraiser from accepting an assignment that "includes the reporting of predetermined opinions and conclusions".